KUKA AG — Interim / Quarterly Report 2012

Nov 20, 2012

InterIm report for the 3rd quarter 2012

SMART TOOLS MEET SMART PEOPLE

Smart toolS meet Smart people

technology

kuka'S IntellIgent robotIcS and automatIon SolutIonS are alwayS one Step ahead.

marketS

kuka gIveS ItS worldwIde cuStomerS a decISIve lead whIle conductIng buSIneSS SuStaInably.

employeeS

kuka'S people work paSSIonately and creatIvely. theIr Strong commItment and expertISe IS our moSt valuable aSSet. kuka offerS contInuIng educatIon opportunItIeS acroSS the globe.

partnerS

kuka'S truStworthIneSS and relIabIlIty IS evIdent In all ItS partnerShIpS. It'S how the company enSureS endurIng SucceSS for all ItS aSSocIateS.

KUKA Robotics

kuka robotics' core competence is in the development, manufacturing, controlling, sales and service of industrial robots suitable for any application and any industry sector, in addition to linear units, positioners and mobile platforms.

KUKA systems

kuka Systems offers its customers robot-based automation solutions. as general contractor, the division designs and builds customized production lines. the division has core competencies in processes such as welding, gluing, sealing, converting, assembling, testing and handling of metals, glass and other materials.

contentS

OVERVIEW	4
KEY FIGURES	4
FOREWORD	5
MANAGEMENT REPORT	6
Economic environment	6
Business per formance	7
Divisions	9
Earnings position, assets and financial position	13
Research and development	16
Employees	16
Risk and opportunity report	17
Outlook	17
KUKA AND THE CAPITAL MARKET	18
INTERIM FINANCIAL ST ATEMENTS	20
FINANCIAL CALENDAR, DISCLAIMER, CONTACT	29

OVERVIEW

stRoN G DemAND coNtiNUes, P Ro F it moRe tHAN DoU b L e D

• _ Orders received in first nine months of 2012 reach eur 1,486.5 million, up 22.3 percent
• q3 / 12: robotics reports a high eur 185.1 million

_ Sales revenues in first nine months of 2012 reached eur 1,306.5 million, up 26.5 percent

• q3 / 12: Systems posts new quarterly record of eur 301.6 million
• _ EBIT climbs to eur 82.2 million and ebIt margin to 6.3 percent in the first nine months of 2012
• q3 / 12: Systems reaches 5.0 percent target margin for the first time
• _ Earnings after taxes double to eur 42.4 million
• _ Guidance 2012 confirmed and firmed up

kuka group, key fIgureS

in EUR million	9 months 2011	9 months 2012	Change
Orders received	1,215.8	1,486.5	22.3 %
Order backlog (09 / 30)	798.6	952.6	19.3 %
Sales revenues	1,032.4	1,306.5	26.5 %
Gross profit	206.1	271.4	31.7 %
in % of sales revenues	20.0 %	20.8 %	–
Earnings before interest and taxes (EBIT)	50.3	82.2	63.4 %
in % of sales revenues	4.9 %	6.3 %	–
Earnings before interest, taxes, depreciation and amortization (EBITDA)	69.1	103.1	49.2 %
in % of sales revenues	6.7 %	7.9 %	–
Net result	20.3	42.4	>100 %
Earnings per share in €	0.61	1.25	>100 %
Capital expenditure	17.3	30.4	75.7 %
Equity ratio in % (09 / 30)	21.9 %	25.4 %	–
Net debts (09 / 30)	79.9	67.4	-15.6 %
Employees (09 / 30)	6,471	7,242	11.9 %

in EUR million	3rd Quarter 2011	3rd Quarter 2012	Change
Orders received	378.4	377.7	-0.2 %
Order backlog (09 / 30)	798.6	952.6	19.3 %
Sales revenues	369.0	490.5	32.9 %
Gross profit	68.7	97.7	42.2 %
in % of sales revenues	18.6 %	19.9 %	–
Earnings before interest and taxes (EBIT)*	19.2	31.7	65.1 %
in % of sales revenues	5.2 %	6.5 %	–
Earnings before interest, taxes, depreciation and amortization (EBITDA)	25.4	38.7	52.4 %
in % of sales revenues	6.9 %	7.9 %	–
Net result	9.0	16.8	86.7 %
Earnings per share in €	0.27	0.50	85.2 %
Capital expenditure	7.6	7.6	0.0 %

* Adjusted for financing costs included in operating result (IAS 23 R)

foreword

Dear shareholders, dear associates,

KUKA generated strong results in the past nine months. Orders received were up 22.3 percent year-over-year, rising from EUR 1,215.8 million at the end of nine months in 2011 to now EUR 1,486.5. Sales revenues jumped 26.5 percent to EUR 1,306.5 million from 1,032.4 million after nine months in 2011. EBIT for the first nine months of fiscal 2012 rose to EUR 82.2 million versus EUR 50.3 million in in the first 9 month 2011, and we generated an EBIT margin of 6.3 percent.

Both divisions landed large orders in the first half of fiscal 2012, which drove sales to a high this quarter. The EUR 490.5 million reported by KUKA represents a new quarterly record. This is to a large extent due to the record EUR 301.6 million posted by the Systems division. The Robotics division's sales revenues remained steady at a high EUR 199.9 million. The Group's consolidated EBIT margin for the quarter rose to 6.5 percent. Systems hit its 5.0 percent target margin. Robotics' high 10.8 percent margin remains stable.

Our major customers rely on our products and innovations. Just recently, we were able to sign a blanket order with VW for 6,000 of our new KR QUANTEC generation of robots, including the KR C4 controller. Our automotive customers continue to invest in new models, fuel-efficient engines and innovations such as lightweight technologies. At the same time, they are boosting their European factory capacities and their presence in the emerging markets.

KUKA will participate in the auto sector's strong capital spending by setting up a new factory in China, soon to be the world's largest robot market. We have laid the cornerstone for a new production facility in one of China's main business centers, Shanghai. We will have about 350 employees looking after the manufacturing, marketing and sales of our products in the Asian market. KUKA will begin manufacturing the KR QUANTEC series of robots and the universal KR C4 controller there starting next year. This will enable us to take advantage of the trend in both automotive and general industry toward quality improvement and cost reduction using robot-based automation and help us achieve our growth objectives.

We have the right products. Not only because they win awards, such as our KUKA QUANTEC series, which received a gold medal in the coveted German Design Award competition, but also because they are tailored to meet the needs of our customers. Or our KR AGILUS, for instance, which we unveiled at the AUTOMATICA trade show in summer, and has been shipping since September. Demand for this small robot is especially strong from general industry.

And our future product, the lightweight robot, will redefine the understanding of cooperation between humans and machines.

KUKA will continue to have many opportunities and options to develop further going forward, but will also have to meet with a number of challenges.

I look forward to working with our motivated employees to set the right course for the future.

"Smart tools meet smart people" – we live this maxim in our day-to-day work.

Sincerely,

Dr. Till Reuter

CEO

conSolIdated management report

ecoNomic eNVi RoNm eN t

World economy generally robust with weakness in Southern Europe

-10 0 10 20 30 40 50 50 The world economy continues to grow relatively fast in the emerging and developing countries, as well as the United States. The eurozone situation is somewhat mixed, with growth in Central and Northern Europe and weaker economic performance in a number of countries in Southern Europe. As a result, the International Monetary Fund's (IMF) economists have scaled back their latest economic development forecasts for this year and next by 0.1 percentage points and 0.3 percentage points to 3.3 percent and 3.6 percent respectively compared to the year prior. Most of the global growth this year will be thanks to China, India and Brazil, which are expected to grow by 7.8 percent, 4.9 percent and 4.0 percent respectively, while the eurozone's contribution to economic growth will be negative at -0.4 percent due to weak demand. Thanks to strong exports, especially to Asia and the Americas, Germany will be an exception. According to the IMF's estimates, the country's gross domestic product should grow 0.9 percent year-overyear in 2012 and 2013.

German carmaker's profit from high foreign market demand

-30 -20 -10 0 10 German carmakers continue to profit from strong foreign demand, particularly the premium vehicle segment. According to the German Association of the Automotive Industry (VDA), in the first nine months of 2012, orders received by German factories rose just under 7 percent from last year's already high level. Domestic production and domestic car exports are still somewhat weaker though, shrinking 2 percent and 1 percent respectively. The declining sales in Southern Europe are one of the main factors affecting the numbers. Overall, European car sales were 7 percent less than last year in the first three quarters of 2012. New car registrations were also down slightly in Germany, declining 2 percent.

German premium carmakers are important KUKA customers and because of their strong market share in Asia and the Americas have developed significantly better than the overall market. VW Group's reported sales for the first nine months of 2012 rose 13 percent year-over-year, BMW's 8 percent and Daimler's 5 percent. Ford on the other hand reported a sharp drop of 12 percent during the same timeframe due to weak demand in Southern Europe.

Growth market USA

Growth is current especially strong in the North American market. In the first nine months of 2012, sales in the United States of cars and light utility vehicles were up 15 percent to 10.9 million units. During the same period, German carmakers' sales rose 20 percent to 900,000 units. A two-pillar strategy; namely, exporting from Germany and manufacturing locally, has been especially successful in this market according to the association.

car SaleS Incl. lIght truckS Jan. – Sep. 2012 worlSwIde

Year-over-year change (in percent)	Source: VDA and ACEA
------------------------------------	----------------------

Mechanical and plant engineering reports excellent loading

600 900 1200 1500 The German mechanical and plant engineering sector is very busy and reports capacity utilization of 87 percent for the first nine months, thanks to strong exports. This gives the sector a nice order cushion, with the average backlog reported at six months. The German Engineering Federation (VDMA) expects production to rise 2 percent year-over-year both this year and next. As a result, the sector's total sales for 2012 could reach EUR 209 billion, slightly higher than the previous record set in 2008.

0 Order backlog stabilized in the third quarter of 2012. Overall, orders received in the first nine months of 2012 were down 5 percent from last year in real terms versus -7 percent at the halfway mark of 2012.

Robotics and Automation growth stronger than the overall market

The robotics and automation segment grew faster than the German mechanical and plant engineering sector overall in the third quarter of 2012; it remained in the upper third of all VDMA segments. Overall, orders received for this segment for the first nine months of 2012 were down only 2 percent in real terms, just under last year's high level; the steady strong demand from abroad and from the eurozone countries, excluding Germany, was remarkable.

bUsiNess P eR Fo RmANce

In general, capital spending continued to be strong during the first nine months. The automotive sector especially continues to invest heavily. Demand from general industry is also excellent; however, there were signs of weakness in some subsectors. In the first nine months of 2012, KUKA Group's total consolidated orders received came in at EUR 1,486.5 million, up 22.3 percent from the EUR 1,215.8 million posted after the first nine months of 2011. Strong demand for our robot-based automation, especially in the first half of fiscal 2012, caused European carmakers to release a large number of robots from new blanket orders and enabled Systems to bring in more large orders than usual.

kuka group – orderS receIved

KUKA Group's orders received for the third quarter of 2012 were reported at EUR 377.7 million, almost identical to the EUR 378.4 million received in Q3 / 11. Demand for industrial robots from the automotive industry remained strong, while orders received from general industry were slightly better. The Robotics division's third quarter orders received came in at EUR 185.1 million, 5.9 percent more than the EUR 174.8 million posted in Q3 / 11. The Systems division posted orders received of EUR 200.3 million, down 4.3 percent from the EUR 209.3 million generated in Q3 / 11.

in € millions ⁰ 200 400 600 800 1000 Because of the high orders received in the first half of fiscal 2012, KUKA Group posted a new sales record of EUR 490.5 million for the third quarter. The new high was driven mainly by the Systems division, which for the first time broke through the EUR 300 million barrier, generating sales revenues of EUR 301.6 million. The Robotics division's loading in the third quarter of 2012 was also outstanding; the division was able to bill EUR 199.9 million in Q3 / 12 versus EUR 165.6 million in Q3 / 11. In the first nine months of 2012, KUKA Group's consolidated sales revenues were thus EUR 1,306.5 million, up 26.5 percent from the EUR 1,032.4 million generated during the first nine months of 2011. The book-to-bill ratio came in at 1.14, still high. It was 1.18 after nine months in 2011. For the quarter just ended, it was 0.77, versus 1.03 for Q3 / 11.

kuka group – SaleS revenueS

in € millions

Because KUKA Group's orders received in the third quarter of 2012 were lower than sales revenues, the order backlog shrank, although it was still at a very high level. At the end of the quarter, the Group's backlog was still EUR 952.6 million (not counting the Robotics division's blanket orders). This is 9.0 percent less than the EUR 1,046.8 million reported on June 30, 2012, but a substantial 19.3 percent higher than the September 30, 2011 posting of EUR 798.6. The Robotics division's order backlog shrinkage was less than Systems division's. Robotics had orders on hand of EUR 294.2 million, down 4.5 percent from the previous quarter, while Systems' backlog slid 11.2 percent to EUR 665.5 million because of the high billings in the third quarter. KUKA Group will continue to enjoy excellent loading well into the coming year and capacity utilization remains very good.

kuka group – order backlog

KUKA Group's earnings before interest and taxes (EBIT) in the first nine months of 2012 came in at EUR 82.2 million, versus EUR 50.3 million after the first nine months of 2011. EBIT margin was reported at 6.3 percent compared to 4.9 percent at the end of nine months in 2011. Due to high factory loading and an increasing share in the sales mix of the new KR QUANTEC / KR C4 generation of robots, the Robotics division's EBIT came in at EUR 61.4 million, up sharply from the EUR 36.2 million reported after nine months in 2011. EBIT margin during the period was reported at 11.1 percent, up from 8.0 percent at the end of nine months in 2011. The Systems division's EBIT in the first nine months of 2012 was EUR 35.2 million and EBIT margin was 4.6 percent. At the end of the first nine months of 2011, the numbers were EUR 22.9 million and 3.8 percent respectively. This increase was driven by high demand, improved process management and continued strong factory loading.

In the third quarter of 2012, KUKA Group generated earnings before interest and taxes (EBIT) of EUR 31.7 million, versus EUR 19.2 million in Q3 / 11. Operating profit has thus risen steadily from quarter to quarter during the current fiscal year. The Robotics division's EBIT in Q3 was EUR 21.6 million, compared to EUR 14.3 million in the third quarter of 2011. EBIT margin was 10.8 percent, versus 8.6 percent in Q3 / 11. The division has thus exceeded its target margin of 10 percent in all three quarters of the current fiscal year. The Systems division's third quarter earnings before interest and taxes (EBIT) came in at EUR 15.2 million, and the business unit reached its EBIT margin target of 5.0 percent for the first time. EBIT margin in Q3 / 11 was 3.8 percent.

kuka group – ebIt

Di VisioN s

robotIcS

key fIgureS

in € millions	9 months 2011	9 months 2012	Change
Orders received	541.1	660.1	22.0%
Order backlog (09 / 30)	237.1	294.2	24.1%
Sales revenues	451.2	554.7	22.9%
Gross profit	133.6	171.2	28.1%
in % of sales revenues	29.6%	30.9%	–
Earnings before interest and taxes (EBIT)	36.2	61.4	69.6%
in % of sales revenues	8.0%	11.1%	–
Earnings before interest, taxes, depreciation and
amortization (EBITDA)	45.7	72.3	58.2%
in % of sales revenues	10.1%	13.0%	–
Employees (09 / 30)	2,688	3,155	17.4%

The strong demand for industrial robots during the current fiscal year was marked by blanket orders from European carmakers. The Robotics division's orders received for the first nine months of 2012 were thus substantially higher than the EUR 541.1 million posted after nine months in 2011, jumping 22.0 percent to EUR 660.1 million. Year-over-year growth of automotive orders was strongest at 29.1 percent; but general industry and service also both reported doubledigit increases of 16.5 percent and 15.1 percent respectively. Accordingly, the automotive industry share of the total grew faster than that of the other segments, ending at 47.7 percent of the division's total orders received for the first nine months of 2012. This compares to 45.0 percent after the

robotIcS – orderS receIved

in € millions

first three quarters of 2011. The other segments' share was 36.3 percent and 16.0 percent respectively and compares to 38.1 percent and 16.9 percent after the first nine months of 2011. Orders received per segment for the first nine months are shown below.

Demand for industrial robots continued to be strong during the third quarter of 2012. The Robotics division's third quarter orders received totaled EUR 185.1 million, 5.9 percent more than the EUR 174.8 million posted in Q3 / 11. Automotive industry orders remained especially strong. The division's orders from this market segment in the third quarter of 2012 came in at EUR 93.6 million, up 9.6 percent from the EUR 85.4 million generated in Q3 / 11. General industry orders were also higher in Q3. Orders received from this market segment for this year's period were EUR 58.0 million, up 2.7 percent from the EUR 56.5 million posted in Q3 / 11.

9M 2012

47.7 % Automotive

key fIgureS

in € millions	3rd Quarter 2011	3rd Quarter 2012	Change
Orders received	174.8	185.1	5.9%
Order backlog (09 / 30)	237.1	294.2	24.1%
Sales revenues	165.6	199.9	20.8%
Gross profit	44.8	62.1	38.6%
in % of sales revenues	27.1%	31.1%	–
Earnings before interest and taxes (EBIT)	14.3	21.6	51.0%
in % of sales revenues	8.6%	10.8%	–
Earnings before interest, taxes, depreciation and
amortization (EBITDA)	17.4	25.5	46.6%
in % of sales revenues	10.5%	12.8%	–
Employees (09 / 30)	2,688	3,155	17.4%

Due to the prior quarters' stronger orders received, the Robotics division's sales revenues in the third quarter of 2012 ended at EUR 199.9 million, reaching the 200 million threshold, as had already been the case in the prior quarter. This represents a jump of 20.8 percent from the prior year's EUR 165.6 million during the same time. In the first nine months of 2012, the division's cumulative sales revenues were EUR 554.7 million, up 22.9 percent from the EUR 451.2 million reported after the first nine months of 2011. The book-to-bill ratio came in at 1.19, still high. It was 1.20 after nine months in 2011. For the quarter just ended, it was 0.93, versus 1.06 for Q3 / 11. Since orders received in the third quarter of 2012 were less than sales, the order backlog was down 4.5 percent from the prior quarter. However, at EUR 294.2 million, it remains very high and still substantially exceeds the EUR 237.1 million reported on September 30, 2011.

In the first nine months of 2012, the Robotics division generated earnings before interest and taxes (EBIT) of EUR 61.4 million, versus EUR 36.2 million the year prior. The substantial increase was driven mainly by high factory loading and a rising share of the new KR QUANTEC / KR C4 generation of products in the sales mix. EBIT margin for the period was reported at 11.1 percent versus 8.0 percent at the end of nine months in 2011. In the third quarter of 2012, the division's EBIT reached EUR 21.6 million, compared to EUR 14.3 million for Q3 / 11. EBIT margin for the period came in at 10.8 percent versus 8.6 percent for Q3 / 11. The strong result is attributable to the general industry and service segments' share of sales, which was slightly above 50 percent. The division has thus exceeded its target margin of 10 percent in all three quarters of the current fiscal year.

400 600 800 1000 During the current fiscal year, Robotics has already manufactured substantially more industrial robots at its central manufacturing facility in Augsburg than in the previous year. Again this year, the recently unveiled KR AGILUS is causing quite a stir among customers.. This strong demand is a direct result of the product's competitive advantages as relates to speed and energy consumption. Following an introductory phase that ended in August 2012, the new small robot was released for sale in September 2012. Because the robot manufacturing plants are heavily loaded and demand is expected to be strong, KUKA AG's Executive Board has decided to expand its manufacturing capacities in Augsburg and Hungary and to construct a new plant in China, where growth is also expected to be strong.

KUKA builds new robot manufacturing plant in China

On October 12, 2012, the cornerstone for KUKA's new robot manufacturing plant was laid in China's prominent commercial and business center, Shanghai. The plant will have a manufacturing area of 20,000 square meters and will be started up some time next year. This will initially give KUKA additional manufacturing capacity of 3,000 industrial robots per year, to be expanded to 5,000 units by 2015. The KR QUANTEC robots and KR C4 controllers made in China will be of the same high quality as those made in Germany.

The new manufacturing plant in Shanghai will build robots for the growing Chinese and Asian markets, and will secure KUKA's leading position in industrial robotics in the Asian market. According to International Federation of Robotics (IFR) estimates, China will likely be the world's largest market for robots by 2015. The new Chinese operation will have 350 employees.

SyStemS

key fIgureS

in € millions	9 months 2011	9 months 2012	Change
Orders received	687.9	849.6	23.5%
Order backlog (09 / 30)	567.7	665.5	17.2%
Sales revenues	607.0	773.4	27.4%
Gross profit	66.1	87.9	33.0%
in % of sales revenues	10.9%	11.4%	–
Earnings before interest and taxes (EBIT)	22.9	35.2	53.7%
in % of sales revenues	3.8%	4.6%	–
Earnings before interest, taxes, depreciation and
amortization (EBITDA)	29.8	43.0	44.3%
in % of sales revenues	4.9%	5.6%	–
Employees (09 / 30)	3,591	3,907	8.8%

The Systems division's orders received for the first nine months of 2012 jumped 23.5 percent from the EUR 687.9 million posted after nine months in 2011, driven by the higher number of large orders from automotive in the first half of fiscal 2012. The final tally was EUR 849.6 million. Systems' orders for the third quarter of 2012 came in at EUR 200.3 million, slightly less than the EUR 209.3 million generated in Q3 / 11.

SyStemS – orderS receIved

The division's sales revenues were up every quarter during the current fiscal year because of the high orders received in prior quarters. In the third quarter of 2012, bookings exceeded the EUR 300 million threshold for the first time, setting a new quarterly record of EUR 301.6 million. This was no less than 45.0 percent higher than the EUR 208.0 million posted as of Q3 / 11.

SyStemS – SaleS revenueS

Order backlog declined accordingly, going from EUR 749.1 million on June 30, 2012 to EUR 665.5 million as of September 30, 2012, a drop of 11.2 percent. However, the division's work on hand was still a substantial 17.2 percent higher than the EUR 567.7 million recorded on September 30, 2011. The book-to-bill ratio for the first nine months of 2012 was 1.10 in spite of strong billings, almost unchanged from the 1.13 reported after nine months in 2011. This order backlog means that the Systems division's capacity utilization will be high well into the coming year.

The System division's earnings before interest and taxes (EBIT) in the first nine months of 2012 came in at EUR 35.2 million, versus EUR 22.9 million after the first nine months of 2011. The result reflects strong customer demand, improved process management and strict cost discipline, especially in Germany. The addition of regional centers for systems business procurement and assembly in Asia (China), America (Mexico) and Europe (Romania) reflects the progress made in increasing the internationalization of the value added chain. EBIT margin for the first nine months of 2012 percent was 4.6 percent versus 3.8 percent at the end of nine months in 2011. Earnings before interest and taxes (EBIT) in the third quarter of 2012 came in at EUR 15.2 million versus EUR 7.9 million the year prior. EBIT margin also improved sharply, rising to 5.0 percent from 3.8 percent the previous year. Systems has thus reached its target margin for the first time.

key fIgureS

in € millions	3rd Quarter 2011	3rd Quarter 2012	Change
Orders received	209.3	200.3	-4.3%
Order backlog (09 / 30)	567.7	665.5	17.2%
Sales revenues	208.0	301.6	45.0%
Gross profit	22.1	31.6	43.0%
in % of sales revenues	10.6%	10.5%	–
Earnings before interest and taxes (EBIT)	7.9	15.2	92.4%
in % of sales revenues	3.8%	5.0%	–
Earnings before interest, taxes, depreciation and
amortization (EBITDA)	10.1	17.6	74.3%
in % of sales revenues	4.9%	5.8%	–
Employees (09 / 30)	3,591	3,907	8.8%

More large orders from Spain and China

Systems recorded more large orders in the reporting period. A Spanish automotive industry subsupplier awarded an order for the engineering and construction of four highly flexible manufacturing lines to manufacture chassis components such as front doors, sliding doors and tailgates for a number of different types of vehicles. Remote laser welding will be one of the technologies used on the lines. The latter process enables parts to be welded from a considerable distance using a laser with a very high power density.

A German premium carmaker also awarded an order for nine manufacturing lines for a car factory in China. The lines will be used to produce front and rear doors, fenders, engine hoods and tailgates. The customer also ordered an assembly and finishing line. Robotics won the order for the robot part of the same job: 105 KR QUANTEC robots will be used for the system.

eARNiN Gs , FiNANciAL AND Assets

Earnings

Growth continued into the third quarter of 2012. After achieving the highest ever quarterly sales in Q2 / 12 (EUR 448.7 million), the company beat this record in the third quarter, with sales reaching EUR 490.5 million. Last year's result at this time was posted at EUR 369.0 million. Sales revenues for the first nine months of 2012 totaled EUR 1,306.5 million, up 26.5 percent from last year's EUR 1,032.4 million. Gross profit on sales improved disproportionately in the first nine months, rising 31.7 percent or EUR 65.3 million to EUR 271.4 million. The Group's gross margin rose accordingly and was up 0.8 percent to 20.8 percent. This increase was driven especially by the Robotics division, which improved its gross margin year-over-year from 29.6 percent to 30.9 percent. The Service sector in particular was able to generate higher gross margins and a higher sales volume. The Systems division also contributed to the gross margin improvement over last year. It was up 0.5 percentage points to 11.4 percent. EUR 5.1 million of the Systems division's manufacturing costs were financed, compared to EUR 5.6 million the year prior.

Overhead costs (sales, research and development and administration) totaled EUR 187.9 million versus last year's EUR 157.1 million. As a percentage of sales, overhead costs were 14.4 percent, less than last year's 15.2 percent. While administration costs rose in line with higher sales, the percentage increase in sales and R&D costs was slightly lower. Research and development costs totaled EUR 30.3 million, which compares to last year's EUR 29.4 million. It should be noted here that KUKA is working intensively on the Group's technology focus, both in industrial and advanced robotics. This fiscal year has seen the completion of the KR AGILUS small robot's development, and the R&D team is now pressing ahead with development of the lightweight robot. Important projects that are key to future growth are at the development stage and as a result the associated costs are being capitalized. They will only impact earnings when they are amortized in subsequent periods. In the first nine months, EUR 9.8 million was capitalized for internally generated intangible assets. This compares to EUR 4.3 million the year prior. Overall, there was more R&D activity this year than last in accordance with the budget. The net result of other operating expenses and income of EUR -6.7 million, which compares to EUR -4.4 million the year prior, includes currency exchange effects, especially related to the US dollar, Brazilian real and Chinese yuan, in addition to other factors.

Overall operating profit for the first nine months of this year was EUR 76.8 million, which compares to EUR 44.6 million the year prior. Adjusted for financing charges of EUR 5.4 million included in operating profit, down from EUR 5.7 million the year prior, earnings before interest and taxes (EBIT) came in at EUR 82.2 million, up sharply from the prior year's EUR 50.3 million. EBIT margin for the first nine months was 6.3 percent versus 4.9 percent during the same period last year. EBIT margin for Q3 / 12 was 6.5 percent, up from 5.2 percent in Q3 / 11. EBIT margin has thus been higher than the prior quarter's in every quarter since 2010 without interruption.

	Q2 / 11	Q3 / 11	Q4 / 11	Q1 / 12	Q2 /  12	Q3 / 12
EBIT (in EUR mil
lions) EBIT	16.4	19.2	22.3	21.9	28.6	31.7
margin (in per
cent)	4.9	5.2	5.5	6.0	6.4	6.5

Both divisions contributed to the higher EBIT margin. The Systems division was able to improve its EBIT margin from 3.8 percent to 4.6 percent and the Robotics division's improved even more, up from 8.0 percent to 11.1 percent. The Systems division was able to generate an EBIT margin of 5.0 percent in the third quarter. Robotics achieved 10.8 percent.

EBITDA (earnings before interest, taxes, depreciation and amortization) growth tracked the EBIT increase, going from EUR 69.1 million last year to currently EUR 103.1 million. Total depreciation for the period under review was EUR 20.9 million, versus EUR 18.8 million during the same period last year. Of this total, the Robotics division's share was EUR 10.8 million, which compares to EUR 9.5 million a year earlier. The Systems division accounted for 7.8 million compared to EUR 6.9 million the year prior, and the remaining area's share was EUR 2.2 million versus EUR 2.4 million.

Net interest expense improved to EUR -8.2 million from EUR -13.5 million the year prior. This is largely the result of settling the convertible bond in November 2011. The interest due on the bond was EUR 4.1 million after nine months in 2011. The net interest item includes EUR 14.1 million for interest on the convertible bond placed in 2010, compared to EUR 14.0 million the year prior. Amendments to our Syndicated Senior Facilities Agreement and the signing of additional bilateral lines of credit improved our guarantee conditions. As a result fees dropped EUR 0.5 million, although credit line use remained roughly the same. A total of EUR 144.6 million was drawn on credit lines as of September 30, 2012, versus EUR 148.5 million on September 30, 2011. Accounting-related reclassification of financing charges had a positive impact on the net interest result; in the first nine months of 2012 it came in at EUR 5.8 million versus EUR 5.6 million after nine months in 2011. The share of interest for pensions was EUR 2.3 million compared to EUR 2.4 million a year earlier. Also included is interest income associated with the financing lease for the KTPO pay-on-production contract in the United States.

Earnings before taxes (EBT) in the first nine months of the fiscal year totaled EUR 68.6 million, more than double the EUR 31.1 million earned in the same time period last year. Taxes paid during the period under review totaled EUR 26.2 million, versus EUR 10.8 million last year. The tax rate is thus 38.2 percent, compared to 34.7 percent a year earlier.

KUKA Group's earnings after taxes for the reporting period jumped to EUR 42.4 million from EUR 20.3 million last year. Earnings per share improved accordingly, going from EUR 0.61 to EUR 1.25.

group conSolIdated Income Statement (condenSed)

in € millions	9 months 2011	9 months 2012
Sales revenues	1,032.4	1,306.5
EBIT	50.3	82.2
EBITDA	69.1	103.1
Earnings from financing activities	-13.5	-8.2
Taxes on income	-10.8	-26.2
Earnings after taxes	20.3	42.4

Financial position

The significant improvement in the financial position is reflected in cash earnings, which consist of earnings after taxes adjusted for cash-neutral depreciation on fixed assets and intangible assets and other income and expenses non-impacting cash. These came in at EUR 77.7 million, 27.6 million higher than the comparable prior year's number of EUR 50.1 million.

Cash flow from operating activities was EUR 0.5 million, which compares to EUR -16.3 million in the first nine months of 2011. This reflects the steady increase in working capital as a result of the very satisfactory business growth that continued into the third quarter. On December 31, 2011, tightened trade working capital was EUR 274.6 million. It increased by an additional EUR 116.9 million to EUR 391.5 million to September 30, 2012. Receivables were up EUR 100.5 million, inventories up EUR 30.6 million and offsetting liabilities totaled EUR 14.2 million. Receivables from manufacturing orders were up, especially at our North American companies. At EUR 280.0 million, they are EUR 85.7 million higher than the number reported on December 31, 2011. The reduction in other assets, prepaid expenses and deferred charges of EUR 27.9 million is primarily due to lower value added tax receivables. Overall, cash flow from operating activities rose to EUR 0.5 million despite the EUR 16.8 million business-volume-driven increase in working capital.

The company invested EUR 30.4 million in the first nine months of 2012 compared to EUR 17.3 million in the first nine months of 2011. In addition to the investment of EUR 17.0 million in property plant and equipment, especially machinery (for example, CNC machining center, laser and friction welding machines and presses), this reflects the increased investment in research and development and the associated increase in the intangible assets' share of total investments, which is now 44.1 percent compared to 38.7 percent after the first nine months of 2011. Income from asset retirement during the reporting period was EUR 0.4 million versus EUR 0.5 million the year prior. Cash flow from investments was thus EUR -30.0 million, compared to EUR -16.8 million last year.

The improved cash flow from operating activities plus cash flow from investment activities resulted in a free cash flow of EUR -29.5 million, which compares to last year's EUR -33.1 million.

Cash flow from financing activities was reported at EUR -1.1 million, compared to EUR 10.5 million the year prior. The year prior, a cash injection of EUR 23.7 million resulting from the sale of treasury shares was included here.

As of September 30, 2012, KUKA Group thus had cash and cash equivalents totaling EUR 138.1 million, compared to EUR 125.6 million after the first nine months of 2011. Of the cash and cash equivalents of EUR 179.7 million recognized on the balance sheet dated September 30, 2011, EUR 54.1 million were earmarked to repay the convertible bond due in November 2011. The increase in cash and cash equivalents compared to the prior year's first half is primarily due to the strong earnings growth.

KUKA Group's net debt; that is, liquid assets minus current and non-current financial liabilities, was EUR 67.4 million as of September 30, 2012, higher than the EUR 32.6 million reported on December 31, 2011.

conSolIdated caSh flow (condenSed)

in € millions	9 months 2011	9 months 2012
Cash earnings	50.1	77.7
Cash flow from operating activities	-16.3	0.5
Cash flow from investing activities	-16.8	-30.0
Free cash flow	-33.1	-29.5

Net worth

Non-current assets changed only slightly from the EUR 294.1 million reported on December 31, 2011, down EUR 2.9 million. Fixed assets increased EUR 9.2 million while deferred taxes were lower.

Current assets were sharply higher, especially receivables and inventories. Further details are provided in the financial position section. Current assets totaled EUR 853.7 million as of September 30, 2012, EUR 72.7 million higher than on December 31, 2011.

As of the record date, KUKA Group's total balance sheet rose from EUR 1,078.0 million on December 31, 2011 to EUR 1,147.8 million, up 6.5 percent.

Equity rose from EUR 252.4 million to EUR 291.5 million for the period under review, driven by earnings after taxes of EUR 42.4 million. Foreign currency effects, particularly related to the Brazilian real increased equity by EUR 2.7 million. This was offset by actuarial results from pension obligations of EUR 5.9 million. The equity ratio; that is, equity over total assets, is now 25.4 percent, compared to 23.4 percent on December 31, 2011.

Financial liabilities relate mainly to the corporate bond due in November 2017.

Non-current liabilities rose from EUR 527.9 million on December 31, 2011 to EUR 552.6 million as of September 30, 2012, driven mainly by the aforementioned increase in liabilities.

KUKA Group's working capital rose steadily during the period under review. At the end of 2011, it was still EUR 98.9 million, on March 31, 2012 it was EUR 114.1 million, on June 30, 2012 EUR 140.3 million, and on September 30, 2012 working capital reached EUR 181.6 million, for an increase of EUR 82.7 million in 2012. Further information hereto is outlined in the financial position section.

group aSSetS

in € millions	12/31/2011 09/30/2012
Total assets	1,078.0	1,147.8
Shareholders' equity	252.4	291.5
In percent of total assets	23.4%	25.4%
Net debt	32.6	67.4

ReseARcH & D e V e Lo Pm eN t

KUKA Group's research and development spending totaled EUR 30.3 million in the first nine months of 2012, up from EUR 29.4 million the year prior due to a higher capitalization ratio. The increase in capitalization from last year is offset primarily by new developments and enhancements related to the robot product families and the lightweight robot (LWR).

Expenses for research and development expressed as a percentage of sales were 2.3 percent as of September 30, 2012, which compares to 2.8 percent at the same time last year.

As in the prior quarter, about 90 percent of the R&D expenses are attributable to the Robotics division since the Systems division's R&D expenses are usually covered directly in conjunction with customer projects.

KUKA Robotics begins marketing innovative friction stir-welding technology

7000 8000 KUKA and aerospace group EADS agreed at this year's International Aerospace Exhibition held in Berlin in September 2012 to jointly market robotics solutions based on the innovative friction stir-welding technology DeltaN.

0 1000 2000 3000 4000 5000 This welding technology features a stationary workpiece shoulder and a high-speed rotating welding pin. The metal pieces are mechanically intermixed, transforming them into a softened state that allows the metal to be fused using mechanical pressure. The metal does not melt. This innovative joining technique is especially suitable where the original metal properties must be maintained as much as possible; for example, large aluminum parts.

5000 6000 7000 8000 EADS and KUKA are also assessing the possibility of establishing a DeltaN application center at the new Bavarian International Campus Aerospace & Security (BICAS) in Ottobrunn near Munich (press release dated September 11, 2012).

emPLoyees

As a result of the continuously rising order volume, the workforce again had to be expanded in the third quarter of 2012. The number of persons employed by the Group was 771 higher than in the third quarter of last year, an increase of almost 12 percent. The final total was 7,242 persons, versus 6,471 on September 30, 2011. The increase compared to the 2011 year-end was 653 or 10 percent. Most of the hiring occurred in the manufacturing and sales departments. A similar trend can be observed in the number of part-time workers, where the headcount rose 528 to 1,580. On September 30, 2011, the number was 1,052. The increase from the end of 2011 is thus 502.

There was an especially large increase in the number of employees at Robotics' factories. Here the number of permanent staff was up 467 to 3,155 or 17 percent higher than in the third quarter of 2011. As a result of the high order volume, the Hungarian facilities had to add 181 workers, which is an increase of 20.5 percent higher from the 883 persons employed on September 30, 2011. At the Augsburg location, the division had 182 employees more than in the third quarter of 2011, for a total of 1,431.

The Systems division's workforce expanded by 316 yearover-year to 3,907. Every subsidiary hired additional staff, particularly those in the low-wage countries and the emerging markets. Systems GmbH in Augsburg had sixty-seven more persons than at the end of the third quarter of 2011. The total increase in permanent staff since the end of 2011 is 61.

kuka group employeeS

KUKA AG's headcount fell from 192 at the end of the third quarter of 2011 to 180 at the end of the period under review. This decrease is primarily due to the transfer of some IT employees into the Robotics division.

Ri sKs AND oPPo R tUNities

From an overall risk perspective, KUKA Group is primarily exposed to business performance and fiscal risks. The Executive Board is not aware of any individual or aggregated risks that could threaten the company's existence. Strategically and financially, the company is positioned to be able to take advantage of business opportunities.

Cutbacks in state subsidies and international competitors, especially from Asia, are currently exerting strong pressure on the solar sector. Special conditions apply to any orders KUKA Group takes from the solar industry; for instance, payment terms (first class security guarantees, progress payments, etc.). Given the developments in this sector, KUKA is continuously reviewing the strategic aspects of this market segment. In order to avoid payment default, the company focuses especially on the ratings and liquidity situation of the respective solar industry customers. Special provisions were also made for the orders KUKA is currently processing, which mainly support the aforementioned measures.

Due to the continuing euro debt crisis, future economic developments are somewhat uncertain. Although KUKA currently sees no signs of weaker business performance, a special task force is continuously monitoring the situation. This task force is comprised of representatives of the Robotics and Systems divisions, as well as staff from various holding company central departments. It reports regularly to the Executive Board.

Please refer also to of the detailed report on pages 82 and following of the 2011 annual report.

oU t LooK

The strong results for the first nine months of 2012 prove that KUKA Group is growing profitably. Customers have faith in the quality of the products and benefit from the company's innovation strength. The Group is well positioned for the future.

Robotics and Systems are benefiting from the continuing trend in the automotive sector to introduce new models, fuel-efficient engines and innovations. This is demonstrated by the industry's strong capital spending. The automotive industry is also increasing its presence and its manufacturing capacities in the emerging countries, while at the same time investing in existing European and North American factories.

Our general industry customers are also convinced of the advantages of robot-based automation when it comes to quality improvement and cost savings, and are investing in this process technology. With new products such as the KR AGILUS, developed especially for general industry and released for sale in September 2012 and for which there is already strong demand, we expect to grow faster than the market in the general industry sector.

We are confirming and concretizing our guidance for 2012 based on the growth in the first nine months of 2012. Given unchanged general conditions, KUKA now expects revenues of EUR 1.65 billion for fiscal 2012. Based on this sales forecast, we expect to generate an EBIT margin of at least 6 percent.

kuka and the capItal market

Financial markets recover

The European central bank's announcement at the beginning of September that it would potentially buy additional bonds from the member states in crisis in view of the continuing euro debt crisis eased financial market tensions. As a result, the key German stock indices recovered from the prior quarter's losses and began rallying. The DAX rose 12.5 percent in Q3 / 12 and the MDAX, on which KUKA shares are listed, was up 6.1 percent. Both indices have thus risen over 20 percent in the first nine months of the current calendar year, with the DAX up 22.3 percent and the MDAX up 23.4 percent. The MDAX is just 500 points shy of the record 11,500 reached in 2007.

KUKA share performance shines

KUKA's shares performed considerably better, trading at EUR 22.40 at the end of the quarter. The Q2 / 12 results and the raised guidance for fiscal 2012 overall published at the beginning of August were an important factor in the shares' performance. In total, KUKA shares were up 26.3 percent in the third quarter of 2012, and no less than 58.4 percent in the first nine months of the current fiscal year.

KUKA shares also substantially outperformed those of its peer group of listed mechanical OEMs. The average share price increase here for the third quarter of 2012 was 3.0 percent, and for the first nine months of 2012 it was 20.8 percent.

Dipl.-Kfm. Peter G. Mohnen New CFO

Since former CFO Stephan Schulak, Dipl.-Kfm., left the company on July 31, 2012, KUKA AG's Supervisory Board appointed Peter G. Mohnen, Dipl.-Kaufm., as the company's new CFO . Peter Mohnen is forty-four years old and was E.ON Hungaria's CFO prior to joining KUKA. He took office on August 1, 2012.

kuka'S Share prIce performance January 1 to September 30, 2012*

InterIm report (cumulatIve)

G RoUP coNsoLiDAt eD iNcome stAtemeN t

in € millions	3rd Quarter 2011	3rd Quarter 2012	9 months 2011	9 months 2012
Sales revenues	369.0	490.5	1,032.4	1,306.5
Cost of sales	-300.3	-392.8	-826.3	-1,035.1
Gross profit	68.7	97.7	206.1	271.4
Selling expenses	-26.5	-28.5	-70.4	-84.3
Research and development expenses	-8.9	-12.3	-29.4	-30.3
General and administrative expenses	-17.6	-24.6	-57.3	-73.3
Other operating income	8.5	5.2	28.4	23.6
Other operating expenses	-7.2	-7.8	-32.8	-30.3
Result from operating activities	17.0	29.7	44.6	76.8
Reconciliation to earnings before interest and taxes (EBIT)
Financing costs included in cost of sales	2.2	2.0	5.7	5.4
Earnings before interest and taxes (EBIT)	19.2	31.7	50.3	82.2
Net interest income	2.9	2.2	7.5	7.3
Net interest expense	-6.5	-4.8	-21.0	-15.5
Financial results	-3.6	-2.6	-13.5	-8.2
Earnings before tax	13.4	27.1	31.1	68.6
Taxes on income	-4.4	-10.3	-10.8	-26.2
earnings after taxes	9.0	16.8	20.3	42.4
of which minority interests in profits	-0.1	0.0	0.0	0.0
of which shareholders of KUKA AG	9.1	16.8	20.3	42.4
Earnings per share (diluted / undiluted) in €	0.27	0.50	0.61	1.25

stAtemeN t oF comPReH eNsiV e iNcome

in € millions	3rd Quarter 2011	3rd Quarter 2012	9 months 2011	9 months 2012
Earnings after taxes	9.0	16.8	20.3	42.4
Translation adjustments	3.3	-1.9	-0.2	2.7
Changes of actuarial gains and losses	-3.5	-6.0	-1.1	-7.5
Deferred taxes on changes of acturial gains and losses	0.9	1.2	0.4	1.6
Other comprehensive income	0.7	-6.7	-0.9	-3.2
comprehensive income	9.7	10.1	19.4	39.2
of which: attributable to minority interests	-0.1	0.0	0.0	0.0
of which: attributable to shareholders of KUKA AG	9.8	10.1	19.4	39.2

CONSOLIDATED CASH FLOW STATEMENT

in € millions	9 months 2011	9 months 2012
Net income after taxes	20.3	42.4
Depreciation / amortization on intangible assets	7.6	8.2
Depreciation / amortization on tangible assets	11.2	12.7
Other non-payment-related income	-2.7	-1.6
Other non-payment-related expenses	13.7	16.0
Cash Earnings	50.1	77.7
Changes in provisions	-21.6	2.2
Changes in current assets and liabilities:
Changes in inventories	-45.2	-30.1
Changes in receivables and deferred charges	-109.7	-68.6
Changes in liabilities and deferred charges (excl. financial debts)	110.1	19.3
Cash flow from operating activities	-16.3	0.5
Payments from disposals of fixed assets	0.5	0.4
Payments for capital expenditure on intangible assets	-6.7	-13.4
Payments for capital expenditure on tangible assets	-10.6	-17.0
Cash flow from investing activities	-16.8	-30.0
Free cash flow	-33.1	-29.5
Proceeds from the sale of treasury shares	23.7	0.0
Repayment of bonds and liabilities similiar to bonds	-15.5	0.0
Proceeds from / payments for the acceptance / repayment of bank loans	2.3	-1.1
Cash flow from financing activities	10.5	-1.1
Payment-related change in cash and cash equivalents	-22.6	-30.6
Exchange-rate-related and other changes in cash and cash equivalents	-1.1	-0.1
Change in cash and cash equivalents	-23.7	-30.7
(of which net increase / decrease in restricted cash)	-14.9	0.0
Cash and cash equivalents at the beginning of the period	134.4	168.8
Cash and cash equivalents at the end of the period	125.6	138.1
Restricted cash	54.1	0.0
cash and cash equivalents acc. to balance sheet	179.7	138.1

GROUP BALANCE SHEET

ASSETS

in € millions 12 / 31 / 2011	09 / 30 / 2012
Non-Current assets
Fixed assets
Intangible assets 78.8	84.0
Property, plant and equipment 87.6	91.6
Financial investments 0.2	0.2
166.6	175.8
Finance lease receivables 75.7	73.0
Income tax receivables 7.6	6.2
Other long-term receivables and other assets 12.1	11.0
Deferred taxes 35.0	28.1
297.0	294.1
Current assets
Inventories 195.4	226.0
Receivables and other assets
Trade receivables 145.5	160.3
Receivables from construction contracts 194.3	280.0
Finance lease receivables 4.6	5.0
Income tax receivables 6.0	5.8
Other assets. prepaid expenses and deferred charges 66.4	38.5
416.8	489.6
Cash and cash equivalents 168.8	138.1
781.0	853.7
1,078.0	1,147.8

EQUITY AND LIABILITIES

in € millions	12 / 31 / 2011	09 / 30 / 2012
Equity	252.4	291.5
Non-current liabilities. provisions and accruals
Financial liabilities	194.0	194.7
Other liabilities	13.3	12.6
Pensions and similiar obligations	70.4	76.2
Deferred taxes	20.0	20.2
	297.7	303.7
Current liabilities
Financial liabilities	7.4	10.8
Trade payables	167.2	217.4
Advances received	67.1	70.3
Liabilities from construction contracts	93.4	57.4
Accounts payable to affiliated companies	0.1	0.1
Income tax liabilities	6.1	6.5
Other liabilities and deferred income	109.6	111.3
Other provisions	77.0	78.8
	527.9	552.6

1,078.0	1,147.8

CHANGES TO GROUP EQUITY

						revenues reserves
	Number of shares out standing	Subscribed capital in € millions	Capital reserve in € millions	Treasury stock in € millions	Translation gains / losses in € millions	Actuarial gains and losses in € millions	Annual net income and other revenue reserves in € millions	Equity to share holders in € millions	Minority interests in € millions	Total in € millions
01 / 01 / 2012	33,915,431	88.2	67.5	0.0	-0.2	0.2	95.2	250.9	1.5	252.4
Comprehensive income					2.7	-5.9	42.4	39.2	0.0	39.2
Sale of treasury
shares
Other changes									-0.1	-0.1
09 / 30 / 2012	33,915,431	88.2	67.5	0.0	2.5	-5.7	137.6	290.1	1.4	291.5

						revenues reserves
	Number of shares out standing	Subscribed capital in € millions	Capital reserve in € millions	Treasury stock in € millions	Translation gains / losses in € millions	Actuarial gains and losses in € millions	Annual net income and other revenue reserves in € millions	Equity to share holders in € millions	Minority interests in € millions	Total in € millions
01 / 01 / 2011	32,588,091	88.2	75.4	-27.9	-3.0	1.7	62.2	196.6	1.5	198.1
Comprehensive income					-0.2	-0.7	20.3	19.4	0.0	19.4
Sale of treasury shares	1,327,340			27.9			-4.2	23.7		23.7
Other changes			-1.7				1.2	-0.5		-0.5
09 / 30 / 2011	33,915,431	88.2	73.7	0.0	-3.2	1.0	79.5	239.2	1.5	240.7

noteS on the quarterly report (condenSed)

G RoUP seGm eNt R e Po RtiNG

	robotics			Systems		kuka ag and other companies		reconciliation and consilidation		group
in € millions	9 months 2011	9 months 2012	9 months 2011	9 months 2012	9 months 2011	9 months 2012	9 months 2011	9 months 2012	9 months 2011	9 months 2012
Group external sales revenues	426.1	535.3	606.0	771.2	0.3	0.0	–	–	1,032.4	1,306.5
as a % of Group sales revenues	41.3%	41.0%	58.7%	59.0%	0.0%	0.0%	–	–	100.0%	100.0%
Intra-Group sales	25.1	19.4	1.0	2.2	7.2	0.0	–	–	0.0	0.0
Sales revenue by division	451.2	554.7	607.0	773.4	7.5	0.0	-33.3	-21.6	1,032.4	1,306.5
Result from operating activities	36.1	61.1	17.3	30.1	-8.7	-11.9	-0.1	-2.5	44.6	76.8
Financing costs included in cost of sales	0.1	0.3	5.6	5.1	–	–	–	–	5.7	5.4
Earnings before interest and taxes (EBIT)	36.2	61.4	22.9	35.2	-8.7	-11.9	-0.1	-2.5	50.3	82.2
as a % of sales revenu es of the division	8.0%	11.1%	3.8%	4.6%	–	–	–	–	4.9%	6.3%
as a % of Group exter nal sales revenues	8.5%	11.5%	3.8%	4.6%	–	–	–	–	4.9%	6.3%
EBITDA	45.7	72.3	29.8	43.0	-6.2	-9.6	-0.2	-2.6	69.1	103.1
as a % of sales revenu es of the division	10.1%	13.0%	4.9%	5.6%	–	–	–	–	6.7%	7.9%
as a % of Group exter nal sales revenues	10.7%	13.5%	4.9%	5.6%	–	–	–	–	6.7%	7.9%
Assets (09 / 30 / 2012 / 12 / 31 / 2011)	284.8	373.4	581.6	607.3	174.5	174.5	-174.4	-179.8	866.5	975.4
Payroll (09 / 30)	2,688	3,155	3,591	3,907	192	180	–	–	6,471	7,242

i FRs / iAs AccoUNtiNG stANDARDs

KUKA Aktiengesellschaft, headquartered in Augsburg, prepared its interim financial statements for the period ending September 30, 2012 in line with the IAS 34 Interim Financial Reporting guidelines as adopted by the European Union. The company elected to prepare a condensed version in accordance with this standard. The condensed interim report should be read in conjunction with the Group's consolidated financial statements to December 31, 2011.

The consolidated financial statements for 2011 were prepared according to the International Financial Reporting Standards (IFRS) and the International Accounting Standards (IAS) of the International Accounting Standards Board (IASB), the interpretations of the Standing Interpretation Committee (SIC) as well as the International Financial Reporting Interpretation Committee (IFRIC), as approved by the European Union, supplemented by the guidelines stipulated in article 315a, paragraph 1 of the German Commercial Code (HGB).

G RoUP oF coNsoLiDAt eD comPANies emPLoyee sHARe PRoGRAm

The Group interim report contains forty-nine companies. In addition to KUKA Aktiengesellschaft, it includes six companies registered inside Germany and forty-two firms domiciled outside Germany, for which KUKA Aktiengesellschaft either directly or indirectly holds majority voting rights.

In comparison to December 31, 2011, the following companies were founded and added to the scope of consolidation:

_ KUKA Robotics Manufacturing China Co., LTD. Shanghai, China

The company is part of the Robotics segment. The change in the scope of consolidation does not impair comparability with the previous year.

AccoUNtiNG AND VALUAtioN metHo D s

The same valuation methodology and accounting principles as those used for the consolidated financial statements for the business year ending 2011 were applied in preparing this consolidated interim report, with the exception of the changes described in the following. For further information, please refer to the consolidated financial statements dated December 31, 2011, which form the basis of the interim report presented here. The latter are also available on the Internet at www.kuka.com.

cHANGes to AccoUNtiNG AND VALUAtioN Po L icies

The following new standards and interpretations have come become mandatory since the start of the 2012 financial year:

• _ IFRS 7 Financial Instruments: Disclosure about transition of financial assets
• _ Changes to IFRS 1, serious hyperinflation and elimination of fixed data*
• _ Amendment to IAS 12, Deferred Taxes: Recognition of underlying assets*

* Pending endorsement by the European Union.

The new standards and interpretations are not applicable to or have little impact on KUKA's consolidated statements. KUKA employees of the German companies were able to acquire KUKA shares as part of an employee share program. Based on a staggered holding period of 1, 3 and 5 years, employees are credited with a bonus share for every ten KUKA shares purchased. In addition to the subscribed shares, employees were granted an additional 50 percent shares as an incentive. The number of bonus shares available to all employees was capped at 75,000, the same as the year prior, KUKA employees acquired a total of 109,530 shares.

eARNiNGs P e R sHARe

Undiluted / diluted earnings per share break down as follows:

		9 months 2011	9 months 2012
Net result attributable to shareholders of KUKA AG	in € millions	20.3	42.4
Weighted average number of shares outstanding	shares	33,266,509	33,915,431
Earnings per share	in €	0.61	1.25

Undiluted earnings per share due to shareholders of KUKA Aktiengesellschaft were calculated as per IAS 33 on the basis of Group consolidated earnings after taxes and the weighted average number of shares outstanding for the year.

In the first nine months of 2011, the weighted average number of shares in circulation was 33.3 million. The sale of treasury shares in May 2011 increased the weighted average number of shares outstanding in the first nine months of 2012 to 33.9 million.

sHAReHoL De R s ' eQUity

The subscribed share capital of KUKA Aktiengesellschaft of EUR 88,180,120.60 is subclassified into 33,915,431 no par value bearer shares. Each share is equal to one vote.

The capital reserve applies to KUKA Aktiengesellschaft. The change compared to September 30, 2011 resulted from the budgeted repayment of the convertible bond in November 2011.

The Executive Board of KUKA Aktiengesellschaft, with the approval of the Supervisory Board, resolved to sell treasury shares in the second quarter of 2011. The shares were sold for EUR 18.60 each. After deducting the usual commissions, the company received EUR 23.7 million. Following the sale of the treasury shares, the total number of shares in circulation is 33,915,431.

i As 19 emPLoyee beN e F its

The balance sheet employee benefits account rate of return as of September 30, 2012 and as per IAS 19 for German companies is 3.60 percent per annum and 3.90 percent per annum in North America. On December 31, 2011 it was 4.70 percent for German companies and 4.40 percent in North America. This resulted in actuarial losses for the defined benefit obligation of EUR 7.6 million. Investment income from external pension funds exceeded expectations, resulting in actuarial gains of EUR 0.1 million. The actuarial result was reported under equity as an income-neutral sum of EUR 5.9 million in consideration of deferred taxes.

syNDicAt eD seNioR FAci L i ti e s AGReemeN t

In November 2010, KUKA Aktiengesellschaft completed its financial restructuring by signing a new Syndicated Senior Facilities Agreement and placing a corporate bond with a face value of EUR 202.0 million.

The Syndicated Senior Facilities Agreement comprises a total of EUR 200.0 million (of which EUR 50.0 million is a cash credit line and EUR 150.0 million a line of credit for LCs) and matures at the end of March 2014. According to an amendment to the Syndicated Senior Facilities Agreement in the second quarter of 2012, the company can now elect to use the cash credit line bilaterally as a credit line with the individual banks in the consortium.

Line of credit utilization totaled EUR 112.3 million as of the balance sheet date versus EUR 128.7 on December 31, 2011; the existing operating line of credit was utilized in the amount of EUR 3.6 million compared to EUR 3.8 million on December 31, 2011.

For additional information about the Syndicated Senior Facilities Agreement, please refer to the December 31, 2011 annual report.

otH e R bi L AteRAL LiNes oF cR e Di t

Additional approved lines of credit totaling EUR 62.0 million exist with surety companies and banks. This compares to EUR 52.0 million on December 31, 2011. The company can utilize up to EUR 45.0 million of the lines of credit according to the terms of the Syndicated Senior Facilities Agreement. At the end of the third quarter, the company had utilized EUR 32.3 million versus EUR 36.3 million on December 31, 2011.

The Syndicated Senior Facilities Agreement also allows KUKA to utilize further project related lines of credit to a total of EUR 35.0 million. No funds had been drawn against this credit line as of the record date.

Asset- b A c K e D secURities (Abs ) P RoGRAm

As outlined in the 2011 annual report, KUKA has two ABS programs (Asset-Backed Securities) to a maximum of EUR 50.0 million. A total of EUR 28.4 million were utilized as of September 30, 2012, which compares to EUR 22.5 million on December 31, 2011.

For additional information about the ABS programs, please refer to the annual report dated December 31, 2011.

s eGm eNt R e Po RtiNG

The internal reporting and organizational structure subdivides KUKA into the KUKA Robotics and KUKA Systems segments. Key financial indicators are determined for both segments. Earnings before interest and taxes (EBIT) is used as the key indicator in regard to managing segment profits.

The main elements of the segment reports are contained in the management report on the operating business divisions, Robotics and Systems, as well as in the tables at the beginning of the notes to the quarterly report.

c A sH F LoW stAtemeN t

The cash flow statement shows changes to KUKA Group's liquidity position in accordance with IAS 7. This item comprises all funds recognized on the balance sheet as cash and cash equivalents, i.e. cash in hand, checks and cash balances with financial institutions, provided that they are available within three months. None of the cash reported as of the record date is subject to restrictions related to disposal.

coNtiNGeNt Li Abi L i ti e s AND otH e R FiNANciAL o bLiGAtioN s

There has been no material change in other financial obligations and contingent liabilities since December 31, 2011.

R e L At eD PARties

There have been no changes in dealings with related persons or companies since December 31, 2011.

In total, the value of goods and services supplied to related parties in the first nine months of the financial year was EUR 17.7 million. The goods and services received by the Group from related parties were worth EUR 23.7 million. As of September 30, 2012. receivables totaled EUR 8.1 million and liabilities EUR 2.5 million. The market oriented transfer prices are in accordance with the "dealing at arm's length" principle.

e V eNts oF mAt eRiAL imPo R tANc e AFteR tHe eND oF tHe R e Po RtiNG P e RioD

There were no events of material significance after the close of the reporting period.

Augsburg, November 7, 2012

The Executive Board

Dr. Till Reuter Peter Mohnen

FINANCIAL CALENDAR 2013

FEBRUARY 5	RELEASE OF PRELIMINARY FIGURES FOR 2012
MARCH 26	PRESS CONFERENCE PRESENTING THE ANNUAL FINANCIAL STATEMENTS
MAY 8	REPORT ON THE FIRST QUARTER OF 2013
JUNE 5	ANNUAL GENERAL MEETING
AUGUST 7	REPORT ON THE FIRST HALF OF FISCAL 2013
NOVEMBER 6	REPORT ON THE FIRST NINE MONTHS OF 2013

This quarterly report was published on November 7, 2012 and is available in German and English from KUKA AG's Public / Investor Relations department. In the event of doubt, the German version applies.

DiscL AimeR

The Group interim report contains forward-looking statements based on assumptions and estimates made by the management of KUKA Aktiengesellschaft. Although management is of the opinion that these assumptions and estimates are accurate, future actual developments and future actual results could deviate significantly from these assumptions and estimates due to a variety of different factors. Some of these factors could, for example, include a change in the overall economic climate, exchange rates and interest rates, as well as changed conditions in the markets themselves. KUKA Aktiengesellschaft makes no guarantees that future developments and actual future results will align with the assumptions and estimates contained in this report, nor does it accept any liability for same.

contact and ImprInt

KUKA AG

Zugspitzstr. 140 86165 Augsburg Germany Phone: +49 821 797-0 Fax: +49 821 797-5333 kontakt@kuka.com

PUbLic / iNVestoR ReLAtioNs

Phone: +49 821 797-5251 Fax: +49 821 797-5333 ir@kuka.com

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